Our church engaged a speaker for a special event we sponsored in 2015. We paid her an honorarium of $750 plus substantiated travel expenses of $414.59. Is the church required to issue a Form 1099-MISC to this speaker for 2015?

Yes. Since the honorarium was $600 or more, Form 1099-MISC should be issued with $750 reflected in Box 7 – Nonemployee Compensation. Since the travel expenses were substantiated, only the honorarium is reportable. If the travel expenses had not been substantiated as to amount, date, and business nature, that amount would need to be included in the Form 1099-MISC reporting.

Dan Busbyis president of the Evangelical Council for Financial Accountability(ECFA)—an accreditation organization that sets standards for governance, financial management, and fundraising/stewardship for churches and other nonprofits across the country.